USDA likely to downgrade South American Soybean Crop Prospects

Dry weather has hampered  South American soybean development this season. USDA will almost certainly downgrade the crop estimates on January 12. We have plugged in our crop estimates assuming the soybean crops in both Brazil  and Argentina will fall at trend level or less. The Austral season still has roughly a month and a half to run so some recovery is possible or a  disaster could be in store if dry weather persists.